Turnaround: PZ Cussons Reports N13.48bn Profit, Cutting Retained Losses

Maker of personal care products PZ Cussons Plc is poised to deliver higher returns to shareholders in the form of dividend as the company has bounced back to profit while the negative shareholders’ fund reduces.

The unaudited financial statements for the first quarter ended August 2026 showed the consumer goods giant posted a profit after tax (PAT) of N13.48 billion from a loss of N4.64 billion the previous year.

Revenue was up 47.59 percent to N59.01 billion as at quarter ended August 2026 from N39.98 billion as at period ended August 2026.

The company returned to an operating profit of N21.59 billion in the period under review from a loss of N4.09 billion the previous year.

Drilling down the numbers shows PZ Cussons realised N12.17 billion from the sale of three properties termed as fixed assets in its book, an exceptional gain that helped buoy the bottom line (profit).

Consumer goods firms have been relying in a price adjustment or hike in the price of key products to fend off rising input costs in the face of inflationary pressures.

Of course, the relative stability in the foreign exchange market underpinned by the current economic reforms has helped reduced the foreign exchange revaluation losses that had undermined margins.

For instance, negative retained earnings reduced to (N3.85 billion) in the period under review from N17.34 billion the previous year.

The company had carried out initiated some strategies with a view to staying afloat at the zenith of the foreign exchange crisis as it sold 50 percent stake in its palm oil business.

While consumer sentiments are low on the back of weak spending and high unemployment rate, analysts are optimistic that the central bank’s gradual shift to a dovish stance will reduce borrowing costs.

The Monetary Policy Committee of the Central Bank of Nigeria has reduced the country’s benchmark interest rate to 27.00 per cent, the first cut in 2025 after three consecutive pauses.

According to the National Bureau of Statistics (NBS), in Q2-25, the Nigerian economy grew by 4.23 percent year on year (yoy) in real terms. This marks an improvement from the 3.48 percent yoy growth recorded in Q2-24, and the 3.13 percent yoy growth observed in Q1-25.

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